Annual landlord revenue tops £32 billion

New analysis by Direct Line for Business (DL4B) reveals that landlords in England are witnessing a booming rental market, with earnings from rental payments in excess of £32 billion per year1&2, or almost £2.7 billion per month.

Outside the capital, Bournemouth is the rental capital of England - 30 per cent of households privately rented

London landlords see rental incomes in excess of £14 billion per year

Mobile Landlord App set to help landlords manage property portfolios

New analysis by Direct Line for Business (DL4B) reveals that landlords in England are witnessing a booming rental market, with earnings from rental payments in excess of £32 billion per year [1&2], or almost £2.7 billion per month.

London landlords collect the largest proportion of private rental income in England at £14 billion per year, more than the North East, East Midlands, West Midlands, Yorkshire and East Anglia combined. In total, 44 per cent of the entire country’s
rent is paid in London. Outside the capital, Leeds pays the greatest amount of any city, with annual private rent totalling £565 million, followed by Birmingham (£521 million) and Manchester (£401 million). Check out our interactive rental heat map to see what the trends look like across the country.

The research reveals that London and the Home Counties dominate rental incomes, with the highest average rents sitting in Central London (£19,596 per year or £1,633 per month). Elmbridge, Surrey, has the highest rents outside London, worth (£18,948
per year or £1,579 per month), followed by South Bucks, where monthly rental costs are £1,530 in the private sector.

Despite this dominance, landlords outside of these regions can also make a healthy rental income. Many areas outside the London commuter belt can command high rental costs, for example Bath and North Somerset, and the Cotswolds both command annual rental
incomes of more than £11,000 per year.

Top five areas in terms of total private rental costs (per month)

Most expensive rental areas (per month)

Inner London

£684,346,209

Central London

£1,633

Leeds

£47,056,464

Elmbridge

£1,579

Birmingham

£43,455,760

South Bucks

£1,530

Manchester

£33,447,750

Three Rivers

£1,372

Liverpool

£20,474,960

Sevenoaks

£1,345

Source: Direct Line for Business

Outside of London, Bournemouth leads the line in terms of private rentals with 30 per cent of households there privately rented. The isles of Scilly (29.7 per cent) and Brighton and Hove (29.6 per cent) follow in second and third place respectively. Across
the country, Central London has the highest proportion of private renters, at 30.7 per cent.

Top five areas with rented households

Inner London

30.7%

Bournemouth UA

30.0%

Isles of Scilly UA

29.7%

Brighton and Hove UA

29.6%

Hastings

28.8%

Source: Direct Line for Business

Jazz Gakhal head of Direct Line for Business said: “Buy to let is becoming an increasingly attractive option for people as property prices continue to soar.

“Landlords and potential landlords looking to take advantage of this should also appreciate the risks involved. Agency fees, bad payers, potential damage to property are but just a few of the costs that can lead to landlords paying out 25 per cent
of the revenues they receive in rental payments annually. Taking the necessary precautions such as letting through an agency and taking out landlord insurance can help to alleviate concerns and ease the rental process.”

To help landlords keep track of charges paid, ongoing expenses and to assist in calculating the yield on their portfolio, Direct Line for Business (DL4B) has launched a new landlord app, Mobile Landlord.
This app enables landlords to manage up to five properties on the go through a single online, mobile portal. The Mobile Landlord is free to download and available immediately on both iOS and Android.

Direct Line for Business

Launched in 2007 Direct Line for Business provides a range of insurance products for the small business sector direct by phone or online.

Direct Line for Business insurance policies are underwritten by U K Insurance Limited, Registered office: The Wharf, Neville Street, Leeds LS1 4AZ. Registered in England No 1179980. U K Insurance Limited is authorised by the Prudential Regulation Authority
and regulated by the Financial Conduct Authority and the Prudential Regulation Authority.

Direct Line for Business and UK Insurance limited are both part of Direct Line Insurance Group plc.

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Direct Line insurance policies are underwritten by U K Insurance Limited, Registered office: The Wharf, Neville Street, Leeds LS1 4AZ. Registered in England and Wales No 1179980. U K Insurance Limited is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority, registration number 202810. The Financial Services Register can be accessed through www.fca.org.uk. Calls may be recorded.